3 minute read
Commercial Loans in Landscaping
With the average commercial interest rate becoming lower and access to business capital easier, commercial loans are changing the landscape industry for business owners, and here’s why.
Introduction to Commercial Loans Historically, commercial loans have been costly. Highinterest rates, risky lenders, and hefty penalties on default have made many small to medium-sized businesses leery of utilizing them to drive business growth and or solve problems within their company. If you’re a small business owner, why secure business capital, a line of credit, or a loan through a commercial vendor when you can potentially leverage personal assets like your own home, for example, to acquire an injection of cash at low risk and low-interest rate? Well, that may have been the predicament in the past, but with the rise of more commercial lenders, lower interest rates, a less painful application process, and lesser penalties, accessing business capital is easier than ever.
The History of Commercial Loans Back in the 1960s, there were thousands of commercial banks; however, the appetite of these commercial lenders was minimal. Typically, there was no way to sell off a commercial loan in a cash withdrawal crisis, aka a bank run. And because there was no secondary market for commercial loans acting as a safety net in the event of a liquidity crisis, there were far and few lenders available.
Fast forward to today’s booming economy, and accessing business capital is easier than before, and for a good reason. Cash is plentiful, interest rates are lower than ever, and tech companies have significantly streamlined productivity and efficiency in all industries, including the skilled trades.
Today even industry software solutions such as the Landscape Management Network (LMN) are bringing solutions to their industry for businesses to obtain cash. LMN’s new lending arm service called LMN Lend, the software system’s new online financing platform to help landscapers gain access to capital to grow their business.
Why Commercial Loans in Landscaping The purpose of a commercial loan is simple. Why would you scale your business with your own money if you can grow with someone else’s at minimal risk and cost? Whether you’re solving cash flow problems within your company, increasing productivity by hiring more staff or adding equipment, expanding your fleet of trucks to service more customers, the list of opportunities through the utilization of business capital is endless.
And sure, some steer clear of higher interest rates, however with exceptional budgeting skills and a strong book of business, most landscape contractors and skilled trade business owners factor in the interest rate as a cost of doing business. If a contractor could generate 1 million dollars more in revenue annually by adding an entirely new maintenance crew and the equipment required to complete the work and do it at a low cost and low risk, would they?
In most instances, the answer is pretty simple. One sure thing is that commercial loans are changing the landscape industry for the better and enabling landscape contractors to take on more significant projects, professionalize their company, and solve problems within their business.
To conclude, commercial loans aren’t for everyone, but if you are looking for a growth solution within your landscape company, maybe an injection of business capital can help you take that next leap in growth.
About LMN (Landscape Management Software) Founded in 2009, LMN helped customers create over $51 billion worth of estimates, capture 78 million individual clock-ins, and have managed more than 245,000 employees daily through the software. Visit https://golmn.com/lend/
SNOW TIME TO WASTE!
PRE-ORDER NOW to get your Deere compact wheel loader and attachments like buckets and blades before the snow flies and bury the competition this winter.
More Productive
Only Deere compact wheel loaders are equipped with the Articulation Plus™ steering system, enabling tight turns with large loads.
More Versatile
John Deere and Hard To The Core Brandt attachments tackle a range of tasks so you can get the most out of your machines.
More Uptime
Brandt keeps you up and running with 24/7/365 support. You need us, we’re there. On the phone or in the snow!
